# Bad idea launching my boutique brand?



## stogiefanatic (Jun 8, 2015)

Hey everyone, I'm new to the forums. So glad we all have a place to congregate. I began the process of launching a new boutique cigar brand this year, and since I heard the upcoming possible FDA legislation, I have been having concerns. I know the FDA wants to scare us smaller and newer guys in the cigar manufacturing business. 

Did I invest my time, passion, and money into a business that may never even have a chance to launch? Should I hold off on the production at the plant until I hear a definitive answer? I worry that the batch of 10,000 cigars will only be left to shelve and may never be able to be sold without the years of rigorous FDA tests. 

Are there any cigar manufacturers here that could lend some advice? Is it worth it to continue onward? I've already sent in letters to my local congressmen. I'd really appreciate some insight. And thank you in advance.


----------



## Cigary (Oct 19, 2007)

You've asked the right questions but I'm a little confused as to the nature of what you know vs what you don't know. Those who are owners of Cigar Stores and are also manufacturers should know the climate of cigar business already IMO. To give you advice as to what to do now isn't something we're prepared to do only because you already know the tax issues in NJ when it comes to selling cigars. You mention you have a Plant....if you're not utilizing it you are wasting money already. Depending on what kind of cigars you make has a lot to do with sales and cigars are fine if they are being housed in a good environment...resting/aging. Your questions lead me to believe that you are either fully invested or are a partner in this business and not knowing the pricing of the product you do have has a lot to do with how they will be taxed.

If your business is just starting out you face a ton of uphill battles and there are a lot of articles out there as far as getting more of your questions answered...it takes a ton of money to deal in this hobby if you're an owner of any kind.


----------



## NormH3 (Apr 20, 2015)

Not sure why you are asking here. Seems like you might be more of an expert than the rest of us as we don't know your business. As an afterthought, I was watching a local cable show the other night that uses a panel of 5 or so to review different cigars. They had a guest on that was explaining how his company develops new cigars using different tobaccos. Not sure who he worked for because I tuned in late, but he mentioned it can take 4 years to develop a new cigar. That said, I'm not sure your 1 year is enough.


----------



## stogiefanatic (Jun 8, 2015)

Cigary said:


> You've asked the right questions but I'm a little confused as to the nature of what you know vs what you don't know. Those who are owners of Cigar Stores and are also manufacturers should know the climate of cigar business already IMO. To give you advice as to what to do now isn't something we're prepared to do only because you already know the tax issues in NJ when it comes to selling cigars. You mention you have a Plant....if you're not utilizing it you are wasting money already. Depending on what kind of cigars you make has a lot to do with sales and cigars are fine if they are being housed in a good environment...resting/aging. Your questions lead me to believe that you are either fully invested or are a partner in this business and not knowing the pricing of the product you do have has a lot to do with how they will be taxed.
> 
> If your business is just starting out you face a ton of uphill battles and there are a lot of articles out there as far as getting more of your questions answered...it takes a ton of money to deal in this hobby if you're an owner of any kind.


Thanks for the reply. To answer your questions, my business is registered in Florida, so I am well aware of the taxes in other states. The plant I use is shared with other partnered cigar companies, so it will be utilized regardless by those other companies. I was brought on to create and head-up a new cigar line under a primary brand that has already existed for a few years. Everything is in place from the custom blends, fermentation and aging processes to the warehousing and humidity-controlled storage.

That being said, the investment for the initial run of my brand of cigars will cost a substantial amount of money. After hearing how the FDA legislation could be decided by the end of this summer, I am hesitant about investing in a run of 10,000 cigars just to end up having my hands tied by the FDA. I heard that the FDA approval process takes years. Basically, I don't want to invest just to have the cigars sit in the warehouse waiting for a painstaking FDA approval.


----------



## Cigary (Oct 19, 2007)

stogiefanatic said:


> Thanks for the reply. To answer your questions, my business is registered in Florida, so I am well aware of the taxes in other states. The plant I use is shared with other partnered cigar companies, so it will be utilized regardless by those other companies. I was brought on to create and head-up a new cigar line under a primary brand that has already existed for a few years. Everything is in place from the custom blends, fermentation and aging processes to the warehousing and humidity-controlled storage.
> 
> That being said, the investment for the initial run of my brand of cigars will cost a substantial amount of money. After hearing how the FDA legislation could be decided by the end of this summer, I am hesitant about investing in a run of 10,000 cigars just to end up having my hands tied by the FDA. I heard that the FDA approval process takes years. Basically, I don't want to invest just to have the cigars sit in the warehouse waiting for a painstaking FDA approval.


You pretty much have made the decision already based on facts....sometimes it's just hard to face them. Throwing good money after bad just doesn't make sense to me ( personally ) esp. when there is/was the initial investment but todays Cigar Rabbit Hole is pretty big and goes pretty deep...wish it weren't so but the way the Gov't does business esp. when they are lobbied to death by the anti smoking people it's difficult at best to see the bright side of anything.


----------



## topshelfcigars (May 5, 2007)

The FDA is looking to regulate all "new" cigar products. What they consider "new" is anything first sold after Feb. 2007. There is an attachment to the Dept. of Agriculture budget bill right now that would change the definition of "new" cigar to one that comes to market AFTER the FDA makes it's final determinations for regulations of cigars (i.e. in the future). Hopefully this will get rammed through the process and not vetoed.

The other opportunity we have in the business is if HR662 is passed and not vetoed by the POTUS.


----------

